• Maintenance cost of an equipment is P200000 for 2 years, P40000 at the end of 4 years and P80000 at the end of 8 years. Compute the semi-annual amount that will be set aside for this equipment. Money worth 10% compounded annually.

• Maintenance cost of an equipment is P200000 for 2 years, P40000 at the end of 4 years and P80000 at the end of 8 years. Compute the semi-annual amount that will be set aside for this equipment. Money worth 10% compounded annually.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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ALSO SHOW THE CASH FLOW

• Maintenance cost of an equipment is P200000 for 2 years, P40000 at the end of
4 years and P80000 at the end of 8 years. Compute the semi-annual amount
that will be set aside for this equipment. Money worth 10% compounded
annually.

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Pls show the given and the solution not excel thanks! ALSO SHOW THE CASH FLOW

4. A manufacturer desires to set aside a certain sum of money to provide funds to cover the yearly
operating expenses and the cost of replacing every year the dyes of a stamping machine used in
making radio chassis as model changes for a period of 10 years.
Operating cost
Cost of Dye
Salvage value of dye
= P 500.00
= P 1200.00
= P 600.00
The money will be deposited in a saving account which earns 6% interest. Determine the sum of
money that must be provided, including the cost of initial dye.

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